Parliamentary parties hold technical meeting on the Fiscal Code, agree VAT be cut in two stages – to 20pct in 2016 and to 19pct in 2017

Minister delegate for the Relation with Parliament, National Union for Romania’s Progress (UNPR) deputy chairman Eugen Nicolicea on Thursday said that the parliamentary parties decided that the Value-Added Tax (VAT) be cut in two stages, starting January 1, 2016, to 20 percent, and starting January 1, 2017, to 19 percent.
“We have jointly decided to bring a series of amendments to the Fiscal Code. The main amendment is that we shall have a VAT cut to 20 percent in a first stage, coming into force at the same time with the Code, starting January 1, 2016; starting January 1, 2017, it will be reduced to 19 percent,” Nicolicea said at the Palace of Parliament at the end of a technical discussion between party representatives on the Fiscal Code.
Nicolicea added that the amendment proposals decided at the meeting on Thursday will become amendments to the Fiscal Code when the code is voted on in Parliament.
Parliamentary parties’ representatives at the Palace of Parliament on Thursday had a technical meeting on the Fiscal Code topic, which was resent to Parliament for re-examination by President Klaus Iohannis.
Attending the meeting were Finance Minister Eugen Teodorovici, MP Eugen Nicolicea and Haralambie Vochitoiu from UNPR, Eugen Nicolaescu and Marian Petrache from the National Liberal Party, as well as Iuliu Winkler from the Hungarian Democratic Union of Romania.

Finance Minister : Additional excise duty on fuels to be repealed in 2017 instead of in 2016

Finance Minister Eugen Teodorovici told a technical discussion on Thursday on the Tax Code between leaders of parliamentary parties that a one-year delay was decided in regard to the repealing of the additional excise duty on fuels, from 2016 to 2017.
“A consensus was reached, at least at this level, that two measures should be postponed. Firstly, the Value-Added Tax (VAT) would be reduced to 20 percent as from January 1, 2016 and to 19 percent as from January 1, 2017. A second measure proposed by the National Liberal Party (PNL) regards a one-year delay in repealing the additional excise duty on fuels, from 2016 to 2107. These were PNL’s two measures,” Teodorovici said at the end of the discussion hosted by Parliament Palace.
He added that a 1.2-percent deficit target will not be achieved after the delays pass.
“Today’s figures, after discussing the two measures are approximate; they show [an additional] 0.5-0.6 percent to the initial deficit, which means about 2 percent. (…) So we will overshoot the 1.2-percent fiscal impact target.’
He added that at the meeting of the political leaders the Government was called on to come up with quarterly reports before Parliament on the implementation of the budget, so that the MPs may know that the deficit target is being followed.
He added that the modifications will also be discussed with Romania’s international partners.

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